Managing the equity risk using Short Put Ladder strategy by barrier options

Risk management is one of the prominent issues which are pivotal to the success of a business and may adversely affect profitability if not properly practised. Therefore, the main objective of this paper was to determine risk management practices in manufacturing SMEs in Cape Town. The research conducted was quantitative in nature and constituted the collection of data from 74 SME leaders, all of whom had to adhere to a list of strict delineation criteria. All data collected were thoroughly analyzed through means of descriptive statistics. From the findings made, it is clear that SMEs in the manufacturing sector do in fact understand risk management initiatives applicable to ‘manage’ their respective businesses towards sustainability, but not to a large extent. It was found that respondents are unaware of the elements which make risk management effective, which ultimately aids to the development of problems for SMEs. All employees, managers and owners must coordinate their efforts together to identify and manage organizational risks within their ambit to obtain total risk coverage, as well as provide assurance that these risks are effectively managed from a coordinated approach. Further studies may be carried out to identify measures that can be taken to improve the effectiveness of risk management practices in SMEs.

This study analyzes the effect of gender diversity, board size, and environmental, social, and governance (ESG) disclosures on firm performance and risk management in the consumer goods sector in Indonesia, targeting companies listed on the Indonesia Stock Exchange from 2020 to 2022. Based on 273 cases and using partial least squares-structural equation modeling (PLS-SEM), this paper tests eight direct and moderating hypotheses. The results reveal that both gender diversity and board size positively impact firm value, while board size successfully reduces firm risk. However, gender diversity does not mitigate risks. The findings indicate that increasing board gender diversity and size are positively related to performance, while only board size contributes effectively to risk reduction. ESG disclosures play a moderating role, enhancing the synergy between gender diversity and performance but showing mixed effects on risk reduction. Overall, the study highlights the importance of integrating gender diversity and strong ESG practices to achieve better performance outcomes, improve transparency, and develop a more competitive corporate strategy.

Acknowledgment
The author would like to thank the Higher Education Service Institute of Region VII of the Ministry of Education, Culture, Research and Technology and the Directorate of Research, Technology and Community Service, Directorate General of Higher Education, Research and Technology for funding this research with research contract number 076/SP2H/PT/LL7/2024.

A significant aspect of financial regulation provides for risk mitigation, transparency improvement, and maintaining economic stability, making financial control systems more efficient. This article analyzes the interaction of financial regulation strength with financial control efficiency in five economies, such as the USA, the UK, Germany, Poland, and China, from 2020 to 2023. An econometric model is utilized and the World Bank Financial Regulatory Index is incorporated as the core independent variable, along with financial infrastructure, efficiency of risk modeling, GDP growth, inflation, and financial leverage; all variables are used to understand their effect on financial control mechanisms. It is confirmed that the stronger financial control efficiency of the USA, the UK and Germany is associated with their stronger scoring by financial regulation (the countries with higher scores of financial regulations are better enforced and have more appropriate risk management strategies). On the other hand, Poland and China have problems in terms of regulatory enforcement which translates into lower effectiveness of financial control. The results also show that inflation and financial leverage decrease the efficiency of financial control, and financial infrastructure and risk modeling are positively related to financial control efficiency. The study emphasizes the exigency of regulating financial oversight in emerging markets, strict enforcement policies, and embracing technological advancements that supplement the area. A future research agenda needs to broaden the scope to other economies and qualitative assessments of regulatory effectiveness.